White House and congressional sources are reporting movement towards a jagged bundle of tax hikes and spending cuts that would avert January’s fiscal cliff.

But the deal may fall apart, partly because it calls for substantial sacrifices by each political faction.

It also may be insufficient to head off a financial crisis in the next few years, because it would still increase the federal government’s $16.3 trillion debt by up to another $7 trillion over the next 10 years.

The latest turn in the negotiations came Monday afternoon, when President Barack Obama offered House Speaker John Boehner a 10-year plan that boosts the federal government’s take of the national economy by roughly $1.3 trillion, while trimming spending by only $930 billion, according to GOP aides.

White House aides say the plan would increase taxes by $1.2 trillion, and cut spending by $1.2 trillion.